US Markets at Critical Levels Ahead of Key CPI Report
The US market is on high alert as several key markets approach critical technical levels following a steep risk-on rally across equities and precious metals.
US equity indices, particularly the Dow Jones, are near record highs with overbought conditions last seen in 2018. Meanwhile, gold and silver have broken above their year-long descending resistance structures and June-August consolidations, while daily momentum has entered overbought territory near critical resistance levels.
The US Dollar Index (DXY) has dropped toward its rising support near 99.30 that has defined its bullish trend since 2026. Fed expectations have also fallen back below 50% following a weaker-than-expected Non-Farm Payrolls report, but markets remain cautious ahead of Wednesday's US CPI report.
Bitcoin remains subdued despite the broader market optimism, trading within its extended June-August consolidation and below the key $68,000 resistance level. A breakout above this level could confirm strengthening momentum and expose the first upside objective near $74,000-$77,000, followed by $84,000-$88,000.